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How Accountants Lost their Balance

How the profession has drifted away from reality and must adapt to an intangible world.

 

This book presents the case that accounting, financial reports, and audits have lost their relevance, as the world has transitioned to a knowledge economy. The book demonstrates that investors and regulators face losing sight of the risk inherent in their investments. There is little information on how management has invested significant financial resources to create underlying capabilities for their business models, yet investors how no visibility on how much has been invested and whether management has been depleting, maintaining or enhancing these investments. There is no link between intangible investment and value creation. The book suggests how accounting and corporate audits and reports MUST change to reflect the reality of the real world.